Tue | Sep 25, 2018

Make Time to Create Wealth

Published:Monday | March 6, 2017 | 12:00 AM

Some people mistakenly believe that attaining riches is a dream that is almost impossible for them to achieve. However, wealth creation is an achievable goal for anyone who decides to wisely utilise a resource that is equally available to everyone - time.

Time is an essential ingredient in your recipe for financial success. Let's look at some of the steps that play an important part in your wealth accumulation plans.

Step One:

Don't waste time

Many people lose out on the possibility of creating significant riches because of the spending choices they made early in life. The saying 'time waits for no man' is very relevant when applied to your wealth-accumulation formula.

Too often, young people use most of their earnings for immediate gratification such as purchasing expensive vacations, acquiring designer clothing and shoes or deciding to live just for the moment instead of considering their future needs. It is only later in life that they look back with regret at all the money they had wasted.

Step Two:

Start to save or invest early

The key to creating a large net worth is to start saving early in life, so begin with your first pay cheque. You can build a comfortable nest egg regardless of where you are starting from financially, if you use time to your advantage.

For example, if you decided to forgo buying lunch and save about $250 per day for five days, at the end of the week you would have $1,250; and in one month, you would have amassed $5,000. After a year, this simple plan would have provided over $60,000 in savings.

Step Three: Create

a savings or investment plan

When you save or invest with a financial institution, your money earns interest which helps your overall nest egg to increase. Your interest is calculated by applying a percentage rate to your initial funds, which is called your principal.

Compounding, which occurs when the interest that your principal earns is added to your initial amount at the end of an agreed period, can help your savings fund to grow even faster. The effect of compound interest is even more dramatic when you save for the long term.

At Scotia Insurance, we offer a universal life insurance and investment plan product - Affirm - which allows you to achieve your goal of protection and investment at the same time. With Affirm, you have the option to invest in three different funds: a money market Fund, a fixed income fund, and a growth fund so that we can create a portfolio that you suits your needs for wealth creation.

Step Four: Consult with a financial adviser

It's important to identify the right financial partner that can assist you in achieving your goals for wealth creation. Select a financial partner that can offer you the right advice and solutions to make your financial goals a reality.

Get started on your savings or investment plan, so that you can comfortably attain your financial objectives. Every day that goes by without you saving, is another day of lost opportunities. Put time on your side by making a commitment today to begin your wealth-creation process today!